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NOTES RECEIVABLE AND PREFERRED EQUITY INVESTMENT | 12 Months Ended
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Dec. 31, 2011
Mortgage Loans on Real Estate [Abstract] |
Notes Receivable and Preferred Equity Investment | Notes Receivable and Preferred Equity Investment As of December 31, 2011, the Company’s notes receivable, net approximated $60.0 million and were collateralized by the underlying properties, the borrower’s ownership interest in the entities that own the properties and/or by the borrower’s personal guarantee. Notes Receivable were as follows at December 31, 2011:
Description |  | Effective interest rate |  | Maturity date |  | Periodic payment terms |  | Prior liens |  | Face amount of mortgages |  | Carrying amount of mortgages
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Zero Coupon Loan |  | 24.00% |  | 1/3/2016 |  | (2) |  | $ | 166,200 |  |  | $ | 5,644 |  |  | $ | 3,563 |
Mezzanine Loan |  | 10.00% |  | 12/31/2013 |  | (2) |  | 85,835 |  |  | 9,089 |  |  | 9,089 |
Mezzanine Loan |  | 15.00% |  | Capital Event |  | (2) |  | 11,925 |  |  | 3,834 |  |  | 3,834 |
Mezzanine Loan |  | 17.50% |  | 1/1/2017 |  | (2) |  | 37,700 |  |  | 3,550 |  |  | 2,173 |
First Mortgage Loan |  | 12.00% |  | 12/5/2012 |  | (1) |  | — |  |  | 8,500 |  |  | 8,500 |
First Mortgage Loan |  | 10.77% |  | Demand Note |  | (2) |  | — |  |  | 10,000 |  |  | 10,000 |
First Mortgage Loan |  | 7.00% |  | 2/1/2012 |  | (1) |  | — |  |  | 4,000 |  |  | 4,000 |
Construction Loan |  | 20.51% |  | 4/1/2012 |  | (2) |  | — |  |  | 5,400 |  |  | 5,400 |
First Mortgage Loan |  | 6.00% |  | 12/1/2012 |  | (1) |  | — |  |  | 12,609 |  |  | 12,609 |
Individually less than 3% |  | 10.00% to 12.00% |  | 12/31/13 to Capital Event |  |  |  | — |  |  | 8,399 |  |  | 821 |
Total |  |  |  |  |  |  |  |  |  |  | $ | 71,025 |  |  | $ | 59,989 |
Notes:
(1) | Payable upon maturity.
(2) | Interest only payable monthly, principal due on maturity.
ACADIA REALTY TRUST AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5. Notes Receivable and Preferred Equity Investment, continued During December 2011, the Company made an $8.5 million loan, which is collateralized by three properties located in Chicago, IL. The loan matures in December 2012 and bears interest at 12.0%. During December 2011, the Company made a $12.6 million loan in conjunction with the sale of 15 Kroger/Safeway locations. The loan, which is collateralized by 14 Kroger/Safeway properties, matures in December 2012 and bears interest at 6.0%. There are two six-month extension options, the first of which bears interest at 9% and the second bears interest at 12%. During October 2011, the Company made a $5.4 million construction loan which is collateralized by an interest in a development property located in Haledon, NJ. The loan matures in April 2012 and has one six-month extension option and bears interest at 15.0%. During September 2011, the Company reclassified an $8.0 million mezzanine loan from Notes Receivable to Investments in and Advances to Unconsolidated Affiliates related to the acquisition of the Georgetown Portfolio (Note 4). During September 2011, the Company made a $4.0 million loan to two members of an entity which owns a shopping center in Washington D.C. The note accrues interest at 7% and matures in February 2012. In addition to the loan, the Company entered into and subsequently exercised an option to purchase the shopping center at a future date, pending the servicer's approval of the assignment of a first mortgage loan of $17.0 million. The loan will be offset against the purchase price when the Company acquires the property. During May 2011, the Company received a final payment of $54.7 million on a mezzanine loan, representing $33.8 million of principal, $13.4 million of accrued interest, and a $7.5 million exit fee. During February 2011, the Company made a mezzanine loan for $3.8 million which accrues interest at 15% and is payable upon a capital event. The Company also received a payment of $1.9 million on a mezzanine loan. During September 2010, the Company received a payment of $49.4 million on a preferred equity investment, representing $40.0 million of invested capital and $9.4 million of accrued preferred return. During April 2010, the Company received a payment of $2.1 million and during December 2009 received a payment of $4.7 million, both representing paydowns on its first mortgage loan secured by three retail properties, following the sale of two of the collateralized properties. During December 2009, the Company made a loan for $8.6 million. The original term of this loan was for one year, with two six- month extension options, and bore interest at 14.5%. During December 2011, this investment was fully liquidated. The Company received $8.6 million of principal and $1.0 million of accrued interest. During August 2009, the Company received a payment of $2.8 million representing the entire balance on its first mortgage loan secured by an interest in a property in Pennsylvania. During August 2009, the Company received a payment of $5.1 million representing a paydown on its first mortgage loan secured by an interest in a single tenant property located in Long Island, New York. During June 2009, the Company received a payment of $0.7 million representing a paydown on its loan secured by an interest in a property in South Carolina. During March 2009, the Company received a payment of $0.3 million representing the entire balance on a loan secured by an interest in a property in South Carolina. ACADIA REALTY TRUST AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5. Notes Receivable and Preferred Equity Investment, continued The following table reconciles notes receivable and preferred equity investments from January 1, 2009 to December 31, 2011:
|  | For the years ended December 31,
(dollars in thousands) |  | 2011 |  | 2010 |  | 2009
Balance at beginning of period |  | $ | 89,202 |  |  | $ | 125,221 |  |  | $ | 125,587 |
Additions during period: |  |  |  |  |  |  |  |  |
New mortgage loans |  | 34,758 |  |  | — |  |  | 10,839 |
Deductions during period: |  |  |  |  |  |  |  |  |
Collections of principal |  | (56,517 | ) |  | (42,010 | ) |  | (13,614 | )
Reclass to investments in unconsolidated affiliates |  | (8,000 | ) |  | — |  |  | — |
Non-cash accretion of notes receivable |  | 786 |  |  | 6,164 |  |  | 5,352 |
Reserves |  | (240 | ) |  | (93 | ) |  | (2,943 | )
Other |  | — |  |  | (80 | ) |  | — |
Balance at close of period |  | $ | 59,989 |  |  | $ | 89,202 |  |  | $ | 125,221 |
The following table reconciles the allowance for notes receivable from December 31, 2009 to December 31, 2011:
| Allowance for
(dollars in thousands) | Notes Receivable
Balance at December 31, 2009 | $ | 5,943 |
Reserves | 93 |
Write off of notes receivable | (3,000 | )
Balance at December 31, 2010 | 3,036 |
Reserves | 240 |
Balance at December 31, 2011 | $ | 3,276 |

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- Definition The entire disclosure for mortgage loans on real estate, this includes the supplemental information pertaining to each mortgage loan receivable that equals or exceeds three percent of the carrying amount of mortgages. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 948 -SubTopic 310 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-29) -URI http://asc.fasb.org/extlink&oid=6589523&loc=d3e617274-123014 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Subparagraph Schedule IV -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 29 -Article 12 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04.(c) Schedule IV) -URI http://asc.fasb.org/extlink&oid=6882300&loc=d3e5864-122674 + Details
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